Judge wants jury to hear all in honey deal gone bad

A Chinese company was allowed Monday to keep its legal defense that government interference made a honey deal with a local processor go bad.

Groeb Farms of Springville claims it lost $4 million when China Industrial Manufacturing Group failed to deliver on a contract for 200 loads of Indonesian honey in 2010.

Perjury should disqualify the import company from presenting claims a customs bond kept the honey from being delivered, argued an attorney for Groeb Farms at a hearing Monday in Lenawee County Circuit Court. A defense witness who claimed knowledge of a customs bond problem turned out to have no first-hand knowledge when he was questioned under oath.

“He has perjured himself. Let’s not split any hairs. He perjured himself in his affidavit,” argued Groeb Farms attorney Scott Seabolt of Detroit.

He asked the court to block China Industrial from presenting evidence of customs delays at a trial scheduled in May.

An affidavit signed by Cherry Paniman, a businessman involved in importing honey, was the foundation of China Industrial’s defense in the case.

Seabolt said attorneys worked more than a year to arrange a deposition and question him.

“We chased this gentleman halfway around the world to Indonesia and back to Texas,” Seabolt said. When he was finally questioned, Seabolt said, Paniman testified he had no personal knowledge of an import bond preventing Indonesian honey from being delivered to Groeb Farms in 2010.

China Industrial turned in a list of eight new witnesses the day before the deadline for attorneys to complete research in the case, Seabolt said.

“What I do have a problem with is being blindsided and sandbagged,” Seabolt told Judge Margaret M.S. Noe.

He argued the delay in naming legitimate witnesses was an intentional effort to prevent him from preparing for trial.

Defense attorney Morley Witus of Detroit said Paniman was confused about the legal definition of personal knowledge. China Industrial then located other witnesses of the customs bond put on honey intended for Groeb Farms, he said, including two customs agents.

In his written brief, Witus claimed it was illegal honey trading by companies like Groeb Farms that caused the U.S. government to impose “enormous” import bonds in 2010. Companies were “knowingly purchasing transshipped Chinese honey and circumventing the anti-dumping duties applicable to Chinese honey,” he stated. Groeb Farms was fined $2 million in a settlement last month with United States Immigration and Customs Enforcement.

Witus also asked the court to dismiss charges of intentional fraud added last year to Groeb’s contract complaint.

Noe rejected motions from both sides to limit what can be presented at the jury trial.“I feel an overwhelming obligation to allow a jury to see and hear everything they should see and hear,” Noe said.

She ordered China Industrial to pay the costs of having its new witnesses testify at depositions before the trial. She also ordered that Paniman be present and available to testify during the trial.